Please help me make this work (sorry so long) - Posted by Michele (OR)

Posted by Clint Wooley on August 24, 2003 at 16:28:35:

If she has her house under contract (to sell to you) she might be able to qualify with the sale of her primary as a condition of the approval…lenders will exclude her current payment in her DTI based on the pending sale.

Please help me make this work (sorry so long) - Posted by Michele (OR)

Posted by Michele (OR) on August 23, 2003 at 23:53:38:

I am trying to figure out a way to make this work. I have been investing in real estate to get the money to add an addition onto our house. I have two rehabs complete and on the market.

  1. 2 bed/2 bath asking $52,000, 1st of $21,000, monthly payment of $199.

  2. 3 bed/ 1 bath asking $73,000, 1st of $41,000, monthly payment of almost $500.

  3. This one will not be complete for another month. 3 bed/1 bath, Future FMV $60,000, 1st of $25,000.

Our current house:

3 bed/1 1/2 bath, FMV $115,000, owe $72,500.

A lady wants our 1st house badly. She has the following properties.

  1. Her house is 5 bed/ 3 bath on 11 acres, owes $220,000 and I donot know her monthly payment. She cannot afford the payments and needs out now. She and husband divorced at the end of building it, now needs a lot of finishing touches like moulding, deck railing, handrails screwed in plus more. Current value about $200,000 when all done with nice yard, probably $300,000. Current tax FMV is $278,810 ~ our tax values are usually pretty close.

  2. Commercial property FMV $80,000, sitting empty, and free and clear also up for sale.

Her house will fit my family and allow us to not build an addition. I was trying to think of a way to do some trading. I cannot qualify for a $200,000 loan. I am hoping to once we sell our current house. Then it will still be tight unless I get a job which I prefer not to ~ I just want to keep doing real estate. My husband is a teacher and does not make a lot of money.

Our FICO’s aren’t great either: 674 and 652.

I was thinking:

Offer $200,000 for her house, sell her our 2 bed for $52,000. Have her get private money loan for the 2 bedroom. Wrap her loan until we sell our house. Then take the cash from our house sell and apply as down on to refinance the new house. I would like to keep the cash from the sell of the 2 bedroom house to her to keep working our real estate.

The difference of what she owes and I pay for her current home she will have to get a loan against her commercial property for. When it sells then she will be out of all this debt.

Am I making this too hard? Am I being unrealistic? Do you see any major obstacles? Any help would be appreciated.

Thanks for your help!
Michele (OR)

Re: Please help me make this work (sorry so long) - Posted by Clint Wooley

Posted by Clint Wooley on August 24, 2003 at 09:44:54:

Why not get her qualified to buy your house, and use the money to put down on her house? With your scores you could get a nodoc or NINA (you don’t have to qualify DTI) at a decent rate, maybe even interest only until you get into a better situation to refi at agency rates. I’ve seen deals structured this way that closed on the same or nearly the same day.

Re: Please help me make this work (sorry so long) - Posted by Michele (OR)

Posted by Michele (OR) on August 24, 2003 at 09:56:26:

I don’t think she will qualify for a loan until she closes on her current house. That is why I was thinking private loan.

Thanks,
Michele (OR)